21116 Post-UNCED Series September 1995 TOWARDS ENVIRONMENTALLY SUSTAINABLE DEVELOPMENT IN SUB-SAHARAN AFRICA Building Blocks for AFRICA 2025 Paper No. 9 r __ Tow ards a Renewable Energy Strategy for Sub.-Saharan Africa Phase 1:_- Photovoltaic Applications Robert Clement-Jones Jean-Roger Mercier AllRoeEnvironmentally Sustainable Development Division JAfrica Technical Department En,ir.n,n1, Snvirmbl S DTe l D l/wuX,,[,,".-Di,ii.. (AFTES) Building Blocks for Environmentally Sustainable Development in Sub-Saharan Africa Paper No. 9 Towards a Renewable Energy Strategy for Africa (RESA) Phase I: Photovoltaic Applications Alternative Energy Development Robert Clement-Jones Jean-Roger Mercier The World Bank Environmentally Sustainable Development Division Africa Region (AFTES) September 1995 The "building blocks" in this series are part of the continuing discussion inaugurated at the UNCED Conference in Rio on building environmentally sustainable development in Africa. The conclusions in these papers are not definitive; nor do their views and interpretations necessarily reflect the opinions of the World Bank or any of its affiliated organizations. ii Foreword W hich environmental issues make development unsustainable in Sub-Saharan Africa, and how do African societies perceive and address these issues? How has the World Bank helped its Africa borrowers to integrate environment into their development strategies and programs? And what must the Bank do to help African countries achieve environmentally sustainable development (ESD)? Inspired by the 1992 Earth Summit in Rio, the Bank has launched a reflection process to answer these questions. In its reflection the Bank is guided by the message of Rio: without improved environmental management, development will be undermined, and without accelerated development in poor countries-which describes most of Sub-Saharan Africa-the environment will continue to degrade. This process seeks to define the Bank's medium-term agenda for helping its Sub-Saharan Africa borrowers attain ESD. It aims at enriching Bank staff's dialogue with African counterparts about improving the conception and implementation of Bank ESD programs. The process should also gain the interest of a much wider audience, including an array of prominent institutions-both African and non-African as well as public and private-universities, NGOs, and bilateral and multilateral agencies. It should encourage a debate on environmental issues which would forge wide support for new African initiatives toward ESD. Space and time determine the process. Environmental issues are location-specific and therefore require integrating the geographic dimension. With respect to time, the process has focused on both past and future historical perspectives. The future time horizon is 2025, i.e., 30 years, corresponding roughly to a generation. Backward, the process focuses on the past decade, and the Bank's association with Africa, in order to measure the full magnitude of environmental issues. Within this process, about 20 thematic 'building blocks" have been compiled, each addressing a specific facet of ESD issues. These 'blocks," prepared by specialists from inside and outside the Bank, fall into five categories: population, environmental knowledge, urban environment, natural resource management, and strategic instruments. The building blocks series has been the basis for the preparation of a World Bank discussion paper: Toward Environmentally Sustainable Development in Sub-Saharan Africa-a World Bank Perspective, which will be published in 1995. iii This report was prepared by Andrew Yager, with final changes provided by Ernst Scott Piscitello under the guidance of Matthew Mendis of Alternative Energy Development (Bethesda, USA). The task managers for this initiative were Robert Clement-Jones and Jean-Roger Mercier from the Environmentally Sustainable Division of the Africa Region Technical Department at the World Bank. Francois Falloux Environmental Advisor Environmentally Sustainable Development Division Technical Department Africa Region (AFTES) iv Table of Contents Acronyms vi EXECUTIVESUMMARY viii 1. INTRODUCTION 1 1.1 Africa Energy Situation 2 1.2 Renewable Energy Activities in Africa 5 Southern African Development Community (SADC) 5 Kenya 7 Zimbabwe 8 Botswana 8 1.3 World Bank Renewable Energy Activities 9 1.4 Contribution of this Report 11 2.0 RENEWABLE ENERGY TECHNOLOGY OPTIONS 13 2.1 Group 1 - Use of RETs in Non-Energy Sector Projects 14 2.2 Group 2 - RET Component in Energy Sector Projects 16 2.3 Group 3 - RET Energy Sector Projects (remote applications) 17 2.4 Group 4 - RET Energy Sector Projects (central systems) 17 3.0 ISSUES RELEVANT TO WORLD BANK INTER VENTIONIN RENEWABLE ENERGY ACTIVITIES 19 4.0 ROLE OF RETs INENERGYPOLICY, STRATEGY, STANDARDIZATION 20 5.0 CONSTRAINTS 22 6.0 RECOMMENDATTIONS 24 7. PLAN OFACTION 27 References 31 LIST OF BANK STAFF INTER VIEWED 31 RESOURCE PERSONS AND ORGANIZATIONS 32 SOURCES OF WRITTEN INFORMA TION 33 List of tables 1. Electrification in Developing Countries 2. Estimated Number of PV Systems in Kenya 3. World Bank SSA Portfolio for 1995-1999 4. Example Classification of the Need for RETs in Group 1 and Group 2 type Projects v Acronyms AfDB African Development Bank AFREPREN African Enegy Policy Research Network AFTES Africa Technical Environmentally Sustainable Development Division (World Bank) ASTAE Asia Region Technical Alternative Energy Unit BTC Botswana Technology Center ESMAP Energy Sector Management Program (World Bank) FINESSE Financing Energy Services for Small-Scale Energy Users GEF Global Environment Facility IDA Intenational Development Association IEN Industry and Energy Department (World Bank) IEPS Initial Executive Project Summaty IPSH Industrial Process Solar Heat NGOs Non-Governmental Organizations NREL National Renewable Energy Laboratory NRSE New and Renewable Sources of Energy PTA Preferential Trade Area PV Photovoltaics REFAD Renewable Energy for African Development RESA Renewable Energy Strategy for Africa RIIC Rural Industries Innovation Center SADC Southern African Development Community SIDA Swedish International Development Agency SSA Sub-Saharan Africa TAU SADC Energy Sector Technical and Administrative Unit TMs Task Managers UNCED United Nations Conference on Environment and Development UJNDP United Nations Development Program vi Executive Summary Background W5 T rithin the context of the continuing dialogue about renewable energy activities in the World Bank, the Environmentally Sustainable Development Division of the 'Africa Region (AFTES) has undertaken development of a Renewable Energy Strategy for Africa (RESA). The RESA is part of the Africa Region's response to and role in the World Bank's Solar Initiative. Funding for development of the RESA was provided by the Global Environment Facility. AFTES has a significant role in promoting and ensuring environmentally sustainable development in Africa. Appropriate use of energy resources is an important element. The overall objective of the RESA is to mainstream Renewable Energy Technologies (RETs) in World Bank work; specifically, by identifying priority sectors and activities, and by recommending practical actions to increase World Bank intervention in RET activities in Sub- Saharan Africa. Implementation of such a program through AFTES is supported by the Africa Technical Department's mandate to provide task managers (TMs) and Country Departments with particular specialized skills. More specifically, the strategy aims to benefit Africa's dispersed rural populations by not only providing electricity for basic household energy requirements (e.g., with photovoltaic solar home systems), but also by providing the energy services required for basic development needs such as nutrition, health services, and education. Conceptually, the RESA will help provide energy services across multiple sectors to the greatest possible number of Africans with cost-effective, environmentally appropriate, promising technology that will enable them to improve their well being. The principal outcomes of implementing the RESA will be: 1) development benefits associated with the use of energy and 2) increased market penetration of RETs, leading to reduced costs, thereby providing greater access to energy services. Building Blocks for Environmentally Sustainable Development in SSA The RESA Development Process The RESA has evolved from discussions with World Bank staff and a workshop with external RET specialists. In total, 32 Bank staff were interviewed, including 14 Africa Department task managers. These interviews revealed a series of constraints to the adoption of renewable energy technologies in SSA Bank projects as well as recommendations to overcome these constraints, principally addressing the needs of task managers wishing to make appropriate use of RETs. In addition to the interviews, AFTES organized a workshop which was attended by about 60 professionals representing the solar photovoltaic industry, the donor community, Bank task managers, private consultants, researchers and NGOs. The workshop participants discussed the many opportunities and few achievements to date with respect to renewable energy activities in SSA. They pointed to significant untapped potential for RETs, particularly in the health, education, agriculture and telecommunications sectors. The workshop participants agreed there is a need for the RESA and supported its development. Pursuant to the recommendations which came out of the interviews and the workshop, a plan of action has been developed to operationalize the RESA within the African Region. This plan of action is the principal output of this report. Renewable Energy Technology Options Following from discussions with Bank staff over the course of this work, the options for implementation of RETs in Bank investment projects are categorized in 4 principal groups. - Group 1 - Use of RETs in non-energy sector projects: for example, the provision of solar powered telecommunications providing access to television and Intemet links in a distance education project; or the inclusion of solar powered vaccine refrigerators and solar powered electric lighting systems in a clinic rehabilitation project; or the inclusion of solar powered electric lighting systems in a school rehabilitation project; or wind powered water pumping for livestock watering in an agriculture project. * Group 2 - RETcomponent in energy sector projects: for example, the addition of a solar or wind electrification component to serve a remote area which would otherwise be overlooked in a rural electrification grid extension project; or the provision of industrial process solar heat ([PSH) in a rural industry development project. * Group 3- RET energy sector projects (remote applications): for example, the installation of 10,000 solar home lighting systems. viii Towards a Renewable Energy Strategy for African (RESA) * Group 4 - RET energy sector projects (central systems): for example, the installation of a 50 MW RET grid connected power system. The focus of the current Strategy development process initiated by AFTES is on application of photovoltaics to Group 1 and 2 type projects. The rationale for this is as follows. a Group 4 projects are currently being developed in Mexico, Morocco, and India. Prior to development of these projects in SSA, development and operational experience should first be gained in these other regions. With proper monitoring of and technology transfer from these efforts, Group 4 projects will likely be developed in Africa in the long-term. Pursuit of this option should be covered by a future detailed study. * The Africa Country Departments and associated TMs currently have access to Bank offices (e.g., IENPD, ENVGC) and energy specialists who are developing Group 3 type RET applications. As a result, relevant Group 3 type projects will be developed in the Africa Region without AFTES intervention. * Despite the potential inroads for Group 3 and 4 type projects, there are minimal mechanisms for integrating Group 1 and 2 type investments into Bank-assisted projects in the Africa Region. Because of these missed opportunities and due to AFT's mandate to provide specialized expertise to the Africa Country Departments and TMs, there is an obligation for implementing RESA through AFTES. Group 1: Use of RETs in Non-Energy Sector Projects Group 1 type projects are typically in the following sectors: health care, education, agriculture, commercial/industrial, telecommunications, and tourism. Renewable energy components within this type of project will generally be only a few percentile of total project cost and, in many cases, less than one percent. Nonetheless, Bank lending for the renewable energy component in this type of project could be in the hundreds of millions of dollars. While the renewable option must be economically viable compared to alternatives, it is noteworthy that affordability is not an issue in many of the Group 1 applications; rather, investment decisions would fall within the context of national development priorities. For example, the cost of a public school solar photovoltaic lighting system would be covered through the government's education budget; there would not be a direct cost burden on the beneficiaries. A cursory analysis of the Bank's project portfolio for the next five years indicates potential renewable energy investments on the order of hundreds of millions of dollars within the non- ix Building Blocks for Environmentally Sustainable Development in SSA energy sectors; hence, these projects offer significant potential for creating a critical mass of renewable energy projects in Africa. The large amount of economic activity associated with implementing renewable energy components in Group 1 projects would lead to increased market penetration, reduced costs, increased affordability and greater access to energy services that would subsequently be provided within Group 2 and Group 3 type projects. Affordability is a constraint to development of most Group 2 and Group 3 projects because the cost of the energy service will generally be borne by the end user. Group 2: RET Component in Energy Sector Projects The addition of a solar or wind electrification component to serve remote customers which would otherwise be ignored in a rural electrification grid extension is an example of a Group 2 type project. In contrast to Group 1 projects, affordability is often an issue here because the cost of the renewable alternative would normally be paid by the customer. It is important to recall that electrification of rural areas in the midwestern United States 40 years ago was undertaken as a national priority. Unfortunately, few SSA economies are capable of undertaking an initiative of this magnitude, South Africa being one notable exception. Another example of a Group 2 type project is the use of Industrial Process Solar Heating (IPSH) Systems. Applications for this technology include those requiring high temperature water or low pressure steam in the range of temperatures between 70 and 120°C. In the case of many African countries, industrial opportunities that might utilize IPSH are often overlooked. This is a good example of a technology which could be successfully "pioneered" in a developing country context. A significant economic advantage is that a simple parabolic trough type collector could be manufactured in most African countries using 100% local materials and labor. In addition, IPSH technology could lead to reduced migration by helping to create employment opportunities in remote areas. Principal Issues/Findings 1) As stated by Davidson and Karekezi: (Africa) could eschew the traditional energy- intensive, fossil fuel dependent and environmentally harmful modernization path of the industrialized countries and develop a low energy intensity, renewable energy dependent, and ecologically sound path to sustainable development. 2) In order to embark on this path, the World Bank Solar Initiative recognizes the need to overcome the inertia favoring well-established, traditional energy projects. Renewable energy technologies offer a unique opportunity in SSA, both in energy sector as well as non- energy sector projects. 3) Adoption of renewable energy technology options in energy sector projects presents an opportunity to accelerate the number of applications that are needed to attain a "critical mass" of RET installations in SSA. However, most RET applications would be in off-grid x Towards a Renewable Energy Strategy for African (RESA) areas where the vast majority of the population cannot afford the technological options for their individual use. Whereas a project to install 10,000 photovoltaic home lighting systems would provide energy services to a potentially large number of customers, success is very much a function of affordability. Due to the large potential social and economic benefits from this type of project, development should continue with guarded optimism and realistic expectations. 4) In a review of the upcoming SADC FINESSE Program, the Central Energy Division (IENPD) observed that: "Small decentralized renewable projects, such as PV for remote area use (Solar Home Systems), can be least-cost options on paper but suffer from the reality that most Governments do not have a policy of supporting electrification of very remote areas, due to scarcity of electrification funds. Without subsidy, remote area households (poor by definition) cannot afford to pay the (still) high cost of PV. In this context, no amount of innovative financing or institutional arrangements can make such projects sustainable." The IENPD observation reinforces the fact that financing of an unaffordable option does not ensure affordability. 5) Non-energy sector projects offer a more immediate opportunity to develop the needed "critical mass" of projects because affordability is often not a primary issue. The cost of installing a renewable energy technology in a clinic (e.g., vaccine refrigeration, lighting) or a school (e.g., lighting, video, computer power) would typically be covered by the national health or education budgets and not be borne directly by the beneficiaries. The decision criteria would be based on national social priorities and not individual affordability. 6) Many of the RET applications in non-energy sector projects would generally be only a few percentile and, in some cases less, than one percent of total project cost. From the perspective of World Bank task managers, inclusion of a small renewable energy component in their projects may initially appear to demand a disproportionate amount of effort. This would be particularly true for TMs whose area of expertise is other than energy. Consequently, the RESA is being developed to respond to the needs and concerns of TMs that could make appropriate use of renewable energy technologies. 7) Due to its relatively broad application in Africa and its suitability to the dispersed African population, applications for photovoltaics will be the initial focus of RESA. 8) Particular measures to provide technical and operational support to task managers are detailed in the Plan of Action. Plan of Action Based on the findings during the conduct of this work, the following plan of action has been developed. As mentioned previously, given its broad experience in Africa, its suitability to the dispersed African population, and its potential to satisfy the highest priority development xi Building Blocks for Environmentally Sustainable Development in SSA needs in Africa (i.e., water/food, health, and education), the initial focus of RESA is on applications of photovoltaics. The first immediate action is to consolidate the framework within the Africa Technical Department that enables task managers to adopt photovoltaics and other appropriate renewable energy technologies in their projects. This framework should include the following elements. 1. Recommended inclusion of photovoltaic applications and RETs in response to the Initial Executive Project Summary (1EPS), where appropriate. AFTES should allow for additional open dialogue with task managers to help identify opportunities and make the link with existing expertise, e.g. in the Central IENPD Division. 2. Provide a short information document to TMs including: * list of possible RET applications by sector; * sample fact sheets for selected RET applications; liEst of suppliers and consultants; * list of donor activities. 3. Issue an electronic newsletter within the Bank; and, if appropriate, disseminate information via a public access network such as the World Wide Web home page of the Africa Region Technical Department (to be operational early Calendar Year 1996). 4. Create an "Operational Staff" working group. This group should comprise TMs and advisors from the energy and non-energy sectors and should represent all Africa Country Departments. These TMs would become photovoltaic and RET resource persons/contact points for the dissemination of relevant information throughout their sector. 5. Prepare and disseminate a checklist for TMs to flag photovoltaic and RET opportunities. There are a great number of projects that could make use of RET options. It would be useful to prepare a one-page summary sheet of photovoltaic and RET options for each sector. 6. Establish a dialogue with other donors, specifically targeting their contribution to the development of wide-scale application of photovoltaics and RET in SSA. 7. Prepare a handbook describing the various renewable energy technology options that could be included in Bank lending. This handbook should initially be only a few pages in length; it could be expanded in response to needs expressed by xiz Towards a Renewable Energy Strategy for African (RESA) TMs. The focus should be to reach the greatest number of persons with a small amount of the most relevant information. The handbook should include a classification of energy services (e.g., essential, non-essential but important, economically justifiable). 8. Maintain accessible information accounts required by TMs to procure renewable energy technologies and services, and ensure access to updated descriptions of renewable energy technology installations in Sub-Saharan Africa (in particular the database maintained by the US National Renewable Energy Laboratory - NREL). 9. Conduct a feasibility study to determine the need for a RET unit in the Africa Department. The initial scope of work would include the following items: i) Consult with regional organizations/programs such as the SADC Energy Sector TAU (Luanda), the RPTES (West Africa) and the African Energy Program (AfDB, Abidjan) to determine priority activities for RET initiatives that respond to African needs. There is a need to synthesize the large amount of information which already exists. ii) Determine an appropriate interfacing role for the World Bank in support of the SADC FINESSE Program. This program is being executed by the UNDP (with Dutch funding), and it will be implemented by the SADC Energy Sector TAU in cooperation with the AfDB. iii) Coordinate with other Bank Group activities such as: the Global Environment Facility; the Solar Initiative; the RPTES; the IFC Renewable Energy and Energy Efficiency Fund, ASTAE; and activities within ESMAP. iv) Convene a meeting of regional governments, NGOs and potential donors to evaluate the progress made as a result of RESA Phase I. 10. Promote the preparation of a sub-regional project (or a series thereof) to ensure a faster development of RET applications by helping create a critical mass effect on the market and provide energy services down to the grassroots level. Towards a Renewable Energy Strategy for Africa (RESA) Phase I: Photovoltaic Applications 1.0 INTRODUCTION T his report summarizes the development of a Renewable Energy Strategy for Africa (RESA) as undertaken by the Environmentally Sustainable Development Division of the Africa Technical Department (AFTES). The goal of the strategy is to mainstream renewable energy technologies (RETs) in World Bank activities in Africa by identifying priority sectors and applications which can provide economic development benefits, and by recommending practical actions to increase Bank intervention in RET activities in Sub- Saharan Africa. More specifically, the strategy aims to benefit Africa's dispersed rural populations by not only providing electricity for basic household energy requirements (e.g., with photovoltaic solar home systems), but also by providing the energy services required for basic development needs, such as nutrition, health services, and education. The strategy has evolved from a review of the energy situation and previous renewable energy programs in Africa, discussions with World Bank staff, and a workshop attended by RET specialists. Due to its relatively broad application in Africa and its suitability to the dispersed African population, applications for photovoltaics will be the initial focus of RESA. Implementation of such a program through AFTES is supported by the Africa Technical Department's mandate to provide task managers (TMs) and Country Departments with particular specialized skills. The model for providing renewable energy (and energy efficiency) expertise to TMs through a Technical Department has been proven in the Bank's Asia Regions via the Asia Alternative Energy Unit (ASTAE). The introduction of the report (Chapter 1) reviews the Africa energy situation, particularly noting the large potential for fostering development objectives (e.g., poverty reduction, improved health, etc.) through increased use of modern energy sources, including RETs. This chapter also reviews the achievements in integrating RETs in the development of the energy sector in the SADC Region as well as solar photovoltaic activities in Kenya, Zimbabwe, and Botswana. Current World Bank rural and renewable energy initiatives are also discussed. Priority sectors and activities for implementing RESA are reviewed in Chapter 2. Chapter 3 highlights some of the principal issues relevant to World Bank intervention in renewable energy activities, most of which were raised by TMs during the development of the strategy. Issues related to the role of RETs in borrowing country energy policies are indicated in Chapter 4. The principal constraints to the widespread adoption of RETs in Sub-Sahara Africa (SSA), as indicated by TMs and other participants in the RESA workshop, are presented in Chapter 5. Chapters 6 and 7, respectively, indicate the principal Building Blocks for Environmentally Sustainable Development in SSA recommendations made by TMs and reiterated by workshop participants, and subsequently propose an action plan to be implemented by AFTES. Annexes to the report include: 1) a list of resource persons and organizations which could assist the Bank in the implementation of the RESA; and 2) a list of resource documents which would be particularly useful to TMs wishing to make use of RET options in their projects. 1.1 Africa Energy Situation The total primary energy use in Sub-Saharan Africa (including South Africa) in 1990 was approximately 267 million tons of oil equivalent. The breakdown by energy type was: traditional fuels, principally composed of unprocessed biomass (53%); oil (26%); solid fuels (14%); hydropower (3%); gas (2%) and renewables (2%) [1]. Widely reported figures indicate that biomass accounts for at least 70-80% of energy supply in most SSA countries. Per capita energy consumption in Africa is by far the lowest of any region in the world and the relatively slow development of modem forms of energy is likely to maintain high levels of reliance on biomass fuels for several decades. Unsustainable pressure on biomass resources in many areas, as well as adverse health effects associated with biomass combustion, indicates a need to change to modem fuels (this argument is supported by the Bank's draft policy paper, Energy Strategies for Rural and Poor People in the Developing World). Furthermore, increasing pressure to stabilize and even reduce global CO2 emissions is encouraging the adoption of non-net carbon technologies. Davidson and Karekezi [2] have suggested a series of issues that support a strategy for implementing ambitious renewable energy initiatives that would enable an environmentally sound and secure energy future for the region. - The low level of development in the modem energy sector paradoxically presents a window of opportunity. The region could eschew the traditional energy- intensive, fossil fuel dependent, and environmentally harmful modernization path of the industrialized countries and develop a low-energy intensity, renewable energy dependent, and ecologically sound path to sustainable development. * While SSA has significant unexploited reserves of fossil fuels, the prospects for major increases in fossil fuel supply are constrained by the unequal distribution of reserves, which necessitates large investments in redistribution. It is estimated that 80% of the region's oil reserves and 76% of the regional natural gas reserves are in Nigeria and that 88% of the regional bituminous coal reserves are in South Africa. Renewable energy resources are, on the other hand, relatively well distributed in the region and would not require major investments in energy distribution networks. 2 Towards a Renewable Energy Strategy for African (RESA) * Even if significant new fossil fuel resources were to be found, SSA's already onerous debt burden and fragile economies would limit the investments that could be made in conventional, centralized energy systems. In 1989, the World Bank estimated that the region would need US$ 28 billion over the next 10 years in order to satisfy 5% growth in energy demand. Competition for limited available capital is more intense due to increased demand from the emerging market economies of the newly industrialized countries of Eastern Europe and Asia. In addition, the performance of centralized and conventional power systems continues to be well below expectations, in spite of accounting for the bulk of the region's investment in the energy sector. The capital requirements of renewables are generally less than those of conventional, centralized investments. More importantly, the modular nature of renewable energy technologies would allow even the poorest SSA countries to begin a phased energy investment program that would not strain its national investment program or draw investment funds away from other pressing needs for nutrition, health, education, and shelter. * In spite of some high profile and dramatic setbacks, the increasing number of democratic elections have ushered in new and pro-active administrations willing to adopt imaginative energy policies and innovative institutional changes that combine supply-oriented investments with demand-side, decentralized and renewable energy programs. Through organizations such as the Southern African Development Community (SADC), African Energy Policy Research Network (AFREPREN) and the Preferential Trade Area (PTA), there is growing high-level support for sustainable energy strategies that include a significant amount of renewable energy activity. The most recent evidence of such support is the May 1995 declaration of the African Ministers of Energy at Tunis, which calls for policies to promote investments in new and renewable energy resources, and energy efficiency measures. * Numerous energy agencies in both the governmental and non-governmental sectors have emerged. In a number of countries, the rapid institutional development is beginning to be matched by the development of a critical mass of local energy expertise willing to face the challenge of formulating and implementing effective renewable energy programs. In addition, growing national and regional links are being forged by energy institutions, especially in the non- governmental sector, leading to better networking and information exchange. This can provide an important avenue for rapid diffusion of information on renewable energy technologies. Because of its potential benefits to the agriculture, health, education, and telecommunications sectors in remote areas, affordable electricity is often identified as one of the most important elements in the rural development process. As shown in Table 1, with a population of 80 million (80% of which live in rural areas), SADC (excluding South Africa) is one of the least electrified regions in the world. Country survey data collected in 1992 indicate that 22% of the 3 Building Blocks for Environmentally Sustainable Development in SSA urban households have electrical service and less than 1% of rural households are connected to the grid. The low population density of the Southern African region results in high per capita cost for provision of electricity to rural areas through conventional centralized power generation and grid distribution. The high cost will prevent access to grid power for a large portion of the population for several decades under current large scale power development scenarios. As a result, modular, decentralized, small-scale technologies, such as RETs, are often the most cost effective (and socially and environmentally beneficial) means of providing energy services to foster economic development. Table 1. Electrification in Developing Countries Urban (%) Rural (Yo) Region 1970 1990 1970 1990 North Africa & Middle East 65 81 14 35 Latin America & Caribbean 67 82 15 40 Sub-Saharan Africa 28 38 4 8 Southern African Development Community (SADC) in 1992, excluding 22 1 South Africa South Asia 39 53 12 25 East Asia and Pacific 51 82 25 45 Al developing Countries 52 76 18 33 Total served (millions) 320 1,100 340 820 Source: These estimates are approximate and were compiled from a survey of World Bank project and sector reports as well as published and unpublished materials for several countries. Surveys of electricity statistics by the World Bank's regional staff in Asia and Latin America also helped to fill in the data. All data are reported in the draft World Bank Policy Paper on Rural Energy in Developing Countries: A Challenge for Economic Development, IENPD, January 1995; with the exception of the SADC data which are quoted in an Assessment of Applications and Markets for Solar Photovoltaic Systems in the SADC Region, August 1992. 4 Towards a Renewable Energy Strategy for African (RESA) 1.2 Renewable Energy Activities in Africa There are a great number of renewable energy activities underway in Africa. This section describes some activities in SADC, Kenya, Zimbabwe and Botswana. Southern African Development Community (SADC) The SADC Energy Sector Technical and Administrative Unit (TAU) has been coordinating regional activities in New and Renewable Sources of Energy (NRSE) for more than nine years. A SADC regional NRSE strategy was adopted by the member States in 1990. The overall objective of this strategy is to promote increased production and utilization of financially, economically, and socially acceptable renewable energy alternatives that meet identified energy needs. Implementation of the strategy has involved the undertaking of several studies which form the basis for the current focus on provision of energy services within the region. A study on NRSE Pricing in the SADC Region was completed in May 1992. This study proposed measures to mitigate price/cost barriers that impede adoption of renewable energy technologies in the region. The specific technologies evaluated in the study were solar photovoltaics, solar water heating, biogas generators and wind water pumping. These technologies were identified as the most promising renewable energy technologies for the region. As a follow-up to this study an Assessment of Applications and Markets for Solar Photovoltaic Systems in the SADC Region was completed in August 1992. The principal objective of this pre-investment study was to determine the potential market size for the most viable applications of PV technology in the SADC countries. The study determined the conditions under which PV systems are economically viable to help the governments of the SADC member states establish appropriate policies, research priorities and financial incentives for the use of PV technology. The specific applications of PV technology assessed in the study were household lighting and appliances; institutional and commercial lighting and power, including telecommunications; pumping for community water supply; pumping for low head, low volume irrigation; and village electrification for a combination of these applications, plus street lighting. Excluding village electrification, the study identified a long-term market potential of 70 megawatts, of which 40 MW is for institutional and commercial applications, and 30 MW is for household lighting and small loads, such as radio and television. The study estimated an additional potential market of approximately 200 MW for village electrification. This latter estimate is based on several statistically, highly sensitive assumptions, and the figure is merely quoted here to indicate the magnitude of a potential market. 5 Building Blocks for Environmentally Sustainable Development in SSA It was noted that a shortage of capital, and not financial viability, was a fundamental barrier to the dissemination of PV in the region. Further, the capital that is available in government treasuries for rural development, including electrification, is generally allocated to traditional utility efforts related to grid extension. The study made several recommendations for financing the purchase of PV systems: 1) The national power utility could purchase PV systems using international credit and then lease them to users, either individually or through a rural electrification Program. 2) A Renewable Energy Development Bank or similar agency could be established with international financing. The Bank would then lend to agencies providing rural credit, to local power utilities, or to private companies that are planning to set up direct sales or leasing programs for PV systems. There are many precedents for this type of arrangement, particularly in agriculture and small business development. 3) Rural cooperatives of PV system buyers could be established with international financing. The cooperatives would own the systems and members would pay a leasing fee. Another significant initiative of the TAU in 1991 was the development of a SADC Strategy for the Use of NRSE Technologies by the Electric Power Utilities. The strategy addresses the potential role of electric power utilities in the use of renewable energy technologies and identifies some of the principal electrical energy needs for domestic, commercial, institutional, and small-scale industrial purposes in rural areas. This strategy provides a framework for the introduction of photovoltaics on a large scale in the energy service industry, including rural electrification. While recognizing that the utilities operate as commercial enterprises, the strategy suggests that governments mandate the power utilities to provide commercial public power and rural electrification through separate mandates. It also suggests that governments facilitate appropriate economic and political climates to attract international investment in production of NRSE technologies. The strategy urges national governments to encourage local industry and contractors to become involved in the production and promotion of NRSE technologies. However, it is incumbent on industry to develop local capability for the manufacturing of renewable energy technology components and the installation and maintenance of systems. Government can provide guidelines to ensure development of a healthy market by avoiding monopoly, fostering development of codes of practice and standard specifications (avoiding poor quality products), and adopting appropriate pricing and tax policies. The strategy recognizes the importance of electricity in rural development. In addition, the strategy recommends that the TAU implement a FINESSE methodology appropriate for development of renewable energy technologies for the SADC region. The SADC Program for Financing Energy Services for Small-Scale Energy Users (FINESSE) was approved by the SADC Energy Ministers at their annual meeting in Windhoek in June 1993. Consistent with the goals of the regional NRSE and Energy Conservation strategies, the TAU initiated the SADC FINESSE Program to stimulate investment for the provision of energy services using renewable energy technologies and energy conservation measures. In 6 Towards a Renewable Energy Strategy for African (RESA) cooperation with the UNDP, the TAU secured Dutch funding to implement the program, the planning of which is underway. The principal barriers to the development and supply of energy services in the SADC Region have been identified in several studies, seminars and workshops as: 1) lack of private sector capacity in manufacturing, distribution, installation and maintenance; 2) lack of access to affordable financing; 3) lack of knowledge of energy needs and markets; and 4) lack of institutional framework to assure sustainability. In response, the NRSE and Energy Conservation sub-sectors are adopting the FINESSE approach to mitigate these constraints. The SADC FINESSE Program targets small-scale energy users, with the goal of facilitating the financing of renewable energy technologies and energy conservation measures. Mechanisms will be developed for using intermediary organizations (development finance institutions, commercial banks, power utilities, private sector companies, NGOs, etc.) to channel multilateral agency and donor funds more effectively for the provision of small-scale energy services. The anticipated result of the FINESSE process will be the creation of the appropriate physical and institutional infrastructure to enable tens of millions of dollars to be invested in economically viable, environmentally, and socially beneficial alternative energy initiatives. Both the African Development Bank and the World Bank provided input to the development of the terms of reference for the SADC FINESSE Program. While both Banks are supportive and expressed interest in participating in the program, the World Bank offered the following observation: "Small decentralized renewable projects, such as PV for remote area use (Solar Home Systems), can be least-cost options on paper but suffer from the reality that most Governments do not have a policy of supporting electrification of very remote areas, due to scarcity of electrification funds. Without subsidy, remote area households (poor by definition) cannot afford to pay the (still) high cost of PV. In this context, no amount of innovative financing or institutional arrangements can make such projects sustainable."* This observation is somewhat substantiated by experience in Kenya and Zimbabwe. Kenya An IENPD report [3] indicates that more than 20,000 rural households in Kenya have purchased photovoltaic systems for lighting, radio and television during the past 10 years. The vast majority of these have been cash purchases. By contrast, the Rural Electrification Program has connected approximately 17,000 rural household during the past 20 years; and at the current connection rate it will take hundreds of years to connect all of Kenya's rural population. The estimated number of photovoltaic systems installed in Kenya through 1993 is given in Table 2. IENDP comments on SADC-FINESSE draft TORs, May 1993. 7 Building Blocks for Environmentally Sustainable Development in SSA Table 2. Estimated Number of PV Systems in Kenya Application Quantity Installed Estimated kWp Vaccine refrigeration 450 90 Home lighting systems > 20,000 > 480 Water pumping systems 50-70 70 2-way radio power > 200 n/a Cathodic protection > 3 n/a School/mission power and > 100 n/a lighting systems Repeater systems > 40 40-60 Electric fencing > 200 7 Zimbabwe A UNDP GEF supported solar PV project in Zimbabwe originally intended to establish a revolving fund to assist the installation of 9,000 solar home systems. Even though a financing scheme has been established with the Agricultural Finance Corporation, the vast majority of systems have been cash purchases by "wealthy" farmers. Botswana The Botswana Ministry of Mineral Resources and Water Affairs has undertaken a significant number of photovoltaic initiatives in recent years. The principal focus of activities has been on lighting, water pumping, refrigeration, and telecommunications. The Energy Affairs Division, within the Ministry, is planning a Renewable Energy Research and Development Program with support from UNDP and SIDA. The Energy Affairs Division will coordinate the program among the principal players: the University of Botswana, the Botswana Polytechnic, the Meteorological Institute, the Botswana Technology Centre (BTC), the Rural Industries Innovation Centre (RIIC) and the private sector. A total of 0.5 MW of PV is estimated to be in operation in Botswana. The largest supplier imported more than one thousand 50 watt panels in 1993. The current inventory of installations is as follows [4]. 8 Towards a Renewable Energy Strategy for African (RESA) * Botswana Telecommunication Corporation has more than 70 microwave repeater stations (200 to 500W) with at least ten more planned. In addition there are more than 80 rural pay-phones with plans to install a further 250 units. * The Botswana Police Force operates 13 PV repeaters for data and facsimile transmission to link the nation-wide police stations; these range in power from 50 to 180 watts. There are plans to add ten more repeaters during the next two years. * Botswana Railways has eight PV signaling stations (300 watts each) and uses PV for hot-box detectors to detect the overheating of bearings as trains pass over the device. * More than 70 PV water pumps are operating with power in the range of 500 to 2000 watts. * The Botswana National Library Service has equipped more than 70 classrooms and community reading rooms with PV lighting systems. * More than 20 clinics are equipped with PV lighting and PV vaccine refrigerators are beginning to be used successfully. * Dozens of houses at clinics, schools, vocational training centers, and private safari camps are PV equipped. * Between 1500 and 2000 private houses are equipped with PV for lighting (and often for television). More than 75% of these are in urban areas within a short distance of the grid; this anomaly occurs due to regulations governing reticulation of mains power to low-cost housing. The Energy Affairs Division has recently completed PV and solar water heating installations at the Manyana Pilot Project. The principal aim of the project is to demonstrate how renewable energy technologies can be utilized in a village environment. Fifteen private huts and 27 houses have been equipped with PV lighting and outlets for television and radio. A 220 volt AC system has been installed in the clinic. There are seven PV powered street lights. The project has been evaluated by the U.S. NGO Renewable Energy for African Development (REFAD). The results of the Manyana project will be used to promote similar initiatives in other areas within the country and throughout the SADC region. In addition to these activities, the Botswana Technology Centre, in collaboration with the Ministry of Mineral Resources and Water Affairs, has also produced a Code of Practice for Photovoltaic Installations in Botswana. While legislation is not yet in place, the BTC is the agent for the Code of Practice control body. 1.3 World Bank Renewable Energy Activities Recent work in the Bank by the Industry and Energy Department ([EN) and ASTAE has demonstrated that renewable energy resources (solar, wind, biomass) and technologies are becoming increasingly economic for certain applications (e.g., lighting, water pumping, water filtration, mechanical power), and that a relatively modest, targeted effort to promote 9 Building Blocks for Environmentally Sustainable Development in SSA renewable applications can produce favorable results. Despite minimal promotion efforts in Africa, there are success stories such as Kenya where more than 1 MW of photovoltaic capacity has been installed, principally in households, and Botswana where 0.5 MW is installed. Although some donors have made a considerable effort to promote RETs in Africa, the rate of application is growing very slowly. Despite the dialogue which it has received, renewable energy remains peripheral to the Bank's core activities in Africa, and lending (as a percentage of the energy portfolio) has been very small. IENPD reports that only US$ 6.2 million was borrowed for renewable energy projects in Africa between 1980 and 1993. However, dedicated efforts in other Bank Regions indicate that renewable energy investments can be a significant part of the lending portfolio. For example, in the Bank's Asia Regions (which are supported by ASTAE), Bank and GEF support for alternative energy (renewable energy and energy efficiency) projects and project components is expected to provide over 12% of power sector lending in FY 1997. Created in January 1992 as a result of the FINESSE studies for Thailand, Malaysia, Indonesia, and the Philippines, ASTAE has successfully integrated renewable energy (and energy efficiency) investments into the Bank's lending portfolio in the Asia Regions. In particular, ASTAE has been successful in assisting borrower countries (e.g., India, Indonesia, Sri Lanka) in developing investments for photovotaic solar home systems for rural household electrification. By locating the FINESSE concept in the Asia Technical Department, TMs from both the South Asia, and East Asia and Pacific Regions have access to ASTAE's specialized renewable energy expertise. The success of the ASTAE model for mainstreaming renewable energy investments further supports the implementation of RESA through AFTES. The Industry and Energy Department of the Central Vice-presidency for Finance and Private Sector Development has launched a major World Bank Solar Initiative to promote applications and demonstration projects of solar energy, and is establishing a core unit for solar energy. With its excellent insolation and unmet energy needs, Africa should be at the forefront of this initiative, both as part of its overall energy lending activities, and in the context of other development lending where renewable energy technologies may be the most appropriate means of delivering essential services (e.g., lighting in schools and clinics, telecommunications, and others). The Solar Initiative recognizes that there is an opportunity to assist the formulation of renewable energy projects that would service identified markets. The initiative has two objectives. First, it will be proactive in project development, strengthening the Bank's own involvement in and commitment to renewable energy projects. Second, the initiative seeks to play a coordinating, strategic, and catalytic role in promoting accelerated research and development of renewable energy resources and technologies by building a network of partnership and collaborations with major international organizations and countries which are strongly interested in the successful use of RETs. 10 Towards a Renewable Energy Strategy for African (RESA) The IENPD has prepared two activity initiation briefs for SADC and for West and Central Africa on identifying bankable solar energy projects. The goal of these proposed activities is to assist African governments to formulate solar photovoltaic projects for World Bank lending which are consistent with the Bank's Solar Initiative and the GEF criteria. The identified projects will lead to fulfillment of the following specific objectives: * facilitate access to affordable PV systems in rural and pern-urban areas; * strengthen the capability of private enterprises in the selected countries to address and serve their markets on a sustained basis; and * institute least-cost options for rural electric energy services. As one of three implementing agencies of the GEF, the World Bank is responsible for investment projects (including mobilizing private sector resources) in developing countries which aim to-among other global environment goals-address climate change caused by the greenhouse effect. GEF grants are applied to the portion of project costs which exceed the costs of the alternative option which neglects global environmental objectives. As a result, funds are available for projects which offer substantial global environmental benefits but are not viable without concessional funding, and for projects which are economically viable but require supplementary financing to bring about global environmental benefits. GEF funds only cover the incremental costs of the project and the balance of project funding must be derived from other sources. Under the GEF's Pilot Phase, seven renewable energy projects were included in the 17 climate change mitigation projects, including biomass projects in Mali and Mauritius, a solar water heating project in Tunisia, and a solar PV project component in India. Under its recently drafted Operational Strategy, the GEF Secretariat has identified removing barriers to RETs, including photovoltaics, as one of three Operational Programs for GEF climate change activities (other focal areas are removing barriers to energy conservation and efficiency technologies/approaches, and reducing the long-term costs of low greenhouse gas emitting energy technologies [including RETs]). Envisaged activities and investments under Phase I of RESA (i.e., activities focusing on photovoltaics) are fully consistent with the draft Operational Strategy. 1.4 Contribution of this Report Many studies have been conducted by the governments, the World Bank, other donor agencies, NGOs and research institutes on the potential development of RETs. The purpose of the present exercise is the preparation of practical guidelines to help the Bank promote significant economic and environmental benefits to developing countries via the use of RETs. Such direction has the potential to cause a shift from the present situation of very limited applications of solar and other RETs to a situation of several hundred megawatts from these sources as fast and as cost effectively as possible. The strategy will provide both basic electricity services for households, and broader energy services required by the agricultural, health, education, and telecommunication sectors of the dispersed rural African population. 11 Building-Blocks for Environmentally Sustainable Development in SSA The objectives of the current work are to: (a) give AFT a clear vision of the priority sectors and activities for applying RETs in Bank lending operations and in GEF financed projects; (b) identify the major obstacles inside and outside the donor community impeding the implementation of environmentally sustainable economic growth through large-scale development of RETs, and a series of practical actions needed in the short and medium terms to overcome these obstacles with particular emphasis on Bank and GEF operations; and (c) lay the foundations for improved operational support to the Africa Country Departments and for greater World Bank intervention in renewable energy activities in-SSA. The main products from this activity are: (a) guidelines for improving operational support of renewable energy development via Project and Environmental Assessment Review procedures, including concrete proposals for the incorporation of RETs in IDA operations and for new GEF- or IDA-financed projects in SSA as well as in country dialogues on energy issues; (b) the identification of the best and most comprehensive information sources on the subject; thus establishing the basis for an interactive network of donors, practitioners, researchers and policy makers; and (c) a building block for the Post-UNCED initiative, which could include remarks on the role of policies in encouraging/discouraging RET (e.g., fiscal policies, tariff and other barriers, subsidies to the conventional power sector). Given its broad experience in Africa (relative to that of other RETs), its suitability to the dispersed African population, and its potential to satisfy the highest priority development needs in Africa (i.e., water/food, health, and education), photovoltaics will be the focus of Phase I of RESA. This initial approach is supported by the Solar Initiative, the experiences and success of the ASTAE unit, the September 1995 GEF Draft Operational Strategy, and the Bank's draft strategy paper, Energy Strategies for Rural and Poor People in the Developing World. Photovoltaics has the potential to provide electricity for basic household lighting and small appliance loads, irrigation and potable water pumping, refrigeration for vaccinations, and lighting for school houses and health clinics. However, other renewable energy sources are also considered in this Report. Furthermore, given the poor record of power companies in rural electrification development in general, and PV rural electrification in particular, collective uses such as health centers and hospitals, schools, tourism resorts, telecommunications, and agriculture will be a major focus of the study. The approach taken within is that the full mobilization of resources for the development of RETs, with an emphasis on solar photovoltaics, will depend on capacity to (i) identify the main constraints to the development of RETs in Africa, and (ii) operate optimally inside the complex network of actors that support initiatives in this area. 12 Towards a Renewable Energy Strategy for African (RESA) 2.0 RENEWABLE ENERGY TECHNOLOGY OPTIONS ollowing from discussions with Bank staff during the conduct of this work, the options for implementation of photovoltaics and other RETs in Bank investment projects fall into four principal groups. * Group 1 - Use of RETs in non-energy sector projects: for example, the provision of solar powered telecommunications providing access to television and Internet links in a distance education project; or the inclusion of solar powered vaccine refrigerators and solar powered electric lighting systems in a clinic rehabilitation project; or the inclusion of solar powered electric lighting systems in a school rehabilitation project; or wind powered water pumping for livestock watering in an agriculture project. - Group 2 - RET component in energy sector projects: for example, the addition of a solar or wind electrification component to serve a remote area which would otherwise be overlooked in a rural electrification grid extension project; or the provision of industrial process solar heat (IPSH) in a rural industry development project. * Group 3 - RET energy sector projects (remote applications): for example, the installation of 10,000 solar home lighting systems. * Group 4 - RET energy sector projects (central systems): for example, the installation of a 50 MW RET grid connected power system. The focus of the current strategy development process initiated by AFTES is on application of photovoltaics to Group 1 and 2 type projects. The rationale for this is as follows: * Group 4 projects are currently being developed in Mexico, Morocco, and India. Prior to development of these projects in SSA, development and operational experience should first be gained in these other regions. With proper monitoring of and technology transfer from these efforts, Group 4 projects will likely be developed in Africa in the long term. Pursuit of this option should be covered by a future detailed study. * The Africa Country Departments and associated TMs currently have access to Bank offices (e.g., IENPD, ENVGC) and energy specialists who are familiar with and developing Group 3 type RET applications. As a result, relevant Group 3 type projects are expected to be developed in the Africa Region without AFTES intervention. 13 Building Blocks for Environmentally Sustainable Development in SSA Despite the potential inroads for Group 3 and 4 type projects, there are minimal mechanisms for integrating Group 1 and 2 type investments into Bank-assisted projects in the Africa Region. Because of these missed opportunities-and due to AFT's mandate to provide specialized expertise to the Africa Country Departments and TMs-there is an obligation for implementing RESA through AFTES. 2.1 Group I - Use of RETs in Non-Energy Sector Projects Group 1 applications of RETs are particularly important because they can be used to satisfy the priority development needs in Africa (i.e., water/food, health, and education). As listed below photovoltaics for Group 1 type projects can be applied to many sectors for a variety of benefits and applications. RETs beyond photovoltaics expand the list of applicable sectors and applications. * health care: lighting for clinics, refrigeration for vaccines, pumping for clean village water supply * education: lighting for school houses * agriculture: pumping for irrigation and draining; mechanical power for milling, etc. * telecommunications: telephones, radio communications, remote site power. Renewable energy components within this type of project will generally be only a small percent of total project cost and, in many cases, less than one percent. Nonetheless, Bank lending for the renewable energy component in this type of project could be in the hundreds of millions of dollars. Table 3 indicates the Bank's SSA portfolio for the next five years. 14 Towards a Renewable Energy Strategy for African (RESA) Table 3. World Bank SSA Portfolio for 1995-1999 Total Loan/Credit SECTOR during 1995-1999 Percentage (billion S) Agriculture 7.9 30.0 Energy 5.6 21.3 Health 4.0 15.2 Power 4.0 15.2 Education 2.8 10.6 Telecommunications 1.6 6.1 Environment 0.3 1.2 Tourism 0.1 0.4 TOTAL 26.3 100.0 Excluding energy and power projects, the non-energy sectors account for US$ 16.7 billion of total anticipated investment during 1995-1999. If only 1 percent of the World Bank investment in these projects is attributable to a renewable energy component, the potential investment is 167 million dollars. This represents a significant amount of investment in cost- effective renewable energy technologies. It is noteworthy that affordability would not be an issue in most of the Group 1 applications; rather, investment decisions would fall within the context of national development priorities. For example, a distance learning course targeting environmental education teachers, being developed at the Folkets Brevskole in Norway, would make significant use of Internet access to which solar powered telecommuunication technology could be provided. An African country wishing to adopt the 'EcoSpheres' course in its environment education curriculum would assess Internet access in relation to the value of adopting the course. Investment in the course and Internet link would come from the national environment and education budgets, and the teachers' individual ability to afford the technological link would not be an issue. From the point of view of World Bank TMs, inclusion of a small renewable energy component in projects may initially appear to demand a disproportionate amount of effort. This would be particularly true for TMs whose area of expertise is other than energy. Consequently, the RESA is being developed to respond to the needs and concems of TMs, and is being implemented through the Africa Technical Department, which has a mandate to provide specialized experuise to the Africa Country Departments. 15 Building Blocks for Environmentally Sustainable Development in SSA Table 4 provides an example classification of some services that can be provided by RETs in non-energy sectors. This type of classification would be useful to assist task managers to determine potential RET project components. Group 1 type projects offer significant potential for creating a critical mass of renewable energy projects in Africa (the September 1995 Draft GEF Operational Strategy refers to such a critical mass as necessary to reduce manufacturing costs and realize economies of scale). The large amount of economic activity associated with implementing renewable energy components in Group 1 projects would lead to increased market penetration, reduced costs, increased affordability, and greater access to energy services that would subsequently be provided within Group 2 and Group 3 type projects. Affordability is a constraint to development of most Group 2 and Group 3 projects because the cost of the energy service will generally be borne by the end user. 2.2 Group 2 - RET Component in Energy Sector Projects The addition of a solar or wind electrification component to serve a remote area which would otherwise be overlooked in a rural electricity grid extension is an example of a Group 2 type project. Such a project component would provide the development benefits of electricity to potential customers who are often overlooked in the rural electrification process due to their inaccessible location, minimal loads, and/or low population density. As Karekezi points out, " many rural Africans (especially in eastern and southern Africa) do not reside in villages but in individual scattered homesteads, which increases the distribution cost of electrification." It is appropriate to consider the cost effectiveness of a solar photovoltaic alternative in these cases. In contrast to Group 1 projects, affordability is often an issue here because the cost of the solar alternative would normally be paid by the homesteader. It appears significant to recall that electrification of rural areas in the midwestern United States 40 years ago was undertaken as a national priority. Unfortunately, few African economies are capable of undertaking an initiative of this magnitude (South Africa being a notable exception). Recognizing the importance of industrial development in remote (off-grid) areas, the SADC Energy Ministers have reconunended the conduct of an "Assessment of Applications and Markets for Industrial Process Solar Heating Systems in the SADC Region." Applications for this technology include those requiring high temperature water or low pressure steam in the range of temperatures between 70 and 120°C. Typical applications include: a) blending and fixing of dyestuffs or bleaching for textile, paper, and printing industries; b) sterilization and pasteurization for dairy products, brewing, pharmaceuticals, and bottle washing; c) cooking, bottling and canning for breweries, food products; d) packaging, for heat shrink and other sealing processes; and e) heat treatment for drying and/or humidification of products, such as tea and tobacco, as well as for desiccation of fruits and vegetables. Industrial process solar heat (IPSH) is a technology which is not proven in the sense of having wide-spread experience in industrialized countries. A principal reason for this is that in developed countries, grid 16 Towards a Renewable Energy Strategy for African (RESA) electricity and other alternatives are generally accessible and less expensive than IPSH. However, in the case of many African countries, industrial opportunities that might utilize IPSH are often overlooked. This is a good example of a technology which could be successfully "pioneered" in a developing country context. A significant economic advantage is that a simple parabolic trough type collector could be manufactured in most African countries using 100% local materials and labor. In addition, IPSH technology could lead to reduced migration by enabling creation of employment opportunities in remote areas. 2.3 Group 3 - RET Energy Sector Projects (remote applications) Many energy specialists within the Bank are developing Group 3 type projects. For example, the Bank-assisted India Renewable Resources Development Project (and associated GEF- supported Alternative Energy Project) is currently under supervision, and the Bank- and GEF-supported Indonesia Solar Home Systems Project is expected to be presented to the Board for approval in September 1996. Because the Africa Country Departments and associated TMs currently have access to energy specialists who are familiar with these and other similar projects, the need for AFTES intervention in this area is minimal. 2.4 Group 4 - RET Energy Sector Projects (central systems) Large scale solar thermal, photovoltaic and wind generated electric power systems in the range of tens or hundreds of megawatts are viable long-term options for many African countries. Although earlier on the learning curve, these RET options are not technically more complex than the current coal or large hydro generation facilities. In view of the large investment potential and the flexibility of site selection, these RETs have significant promise with respect to providing a large amount of African power requirements 50 years from now. As a result, technology transfer, and development and operational experience from centralized renewable energy projects in other regions (e.g., India, Morocco) will help develop the expertise required for such projects in Africa, and comprise valuable future endeavors. 17 Building Blocks for Environmentally Sustainable Development in SSA Table 4. Example Classification of the Need for RETs in Group 1 and Group 2 type Projects SECTOR (non-energy) Essential non-essential economically but important justifiable Health refrigeration (vaccine, blood) x x sterilization x x lighting x telephone x water pumping x Education lighting x television x video x computer x Agriculture water pumping x x refrigeration x lighting x livestock water supply x Commercial refrigeration x radio x battery charging x industrial processes x Telecommunications television x radio x telephone x x Internet x x Tourism lighting x x water pumping x refrigeration x telephone x x 18 Towards a Renewable Energy Strategy for African (RESA) 3.0 ISSUES RELEVANT TO WORLD BANK INTERVENTION IN RENEWABLE ENERGY ACTIVITIES Principal observations arising from discussions with TMs and other Bank staff include the following: * Task managers indicated that they would consider "proven" RETs (i.e., those which are reliable and easy to maintain). They routinely seek GEF support if necessary to achieve economic and/or financial viability. * Whereas large-scale solar thermal electricity generation may be appropriate for countries like Mexico; small-scale remote applications are likely more appropriate for most African countries due to the continent's low population density and the current under-developed enabling environment. * Several TMs indicated the importance of private sector involvement in the promotion of RET options. It has been suggested that established business enterprises could address the early markets by adding renewable energy technology components to their existing line of products. For example, the nascent solar water heating industry in the U.S. in the mid-1970s was, in many cases, supplied by plumbing contractors. • The Bank can assist governments by providing advice toward creating an enabling environment for the private sector to develop capability in the manufacturing of RETs and the installation and maintenance of systems. * Bank policies for supporting appropriate institutional and regulatory frameworks are argued for in the draft TEN strategy paper Energy Strategies for Rural and Poor People in the Developing World). This is appropriate since spending on energy for lighting and communication is a heavy burden on the monetary outlays of poor families. Surveys undertaken by French technical assistants have shown that as much as 5 to 10% of monetary spending of a typical family in Morocco or Mali could go to the purchase of kerosene, candles and batteries, all of which can be replaced by electricity from photovoltaics. The measures recommended by the policy paper include: appropriate tariffs and taxes, issuance of standard specifications and codes of practice, and training courses. * Task managers require guidelines for the procurement of renewable energy technologies. Informational sources, such as the renewable energy project and technology procurement databases currently being developed by NREL, are therefore required. 19 Building Blocks for Environmentally Sustainable Development in SSA * The approximate order of priority needs in Africa is: water/food, health, education, roads, electricity. The RESA would promote RETs within the context of being an option for providing the energy services which enable fulfillment of identified needs. While some RET applications do not have clear economic justification, there is a need to tie social benefits to economic advantage wherever possible (and as the September 1995 Draft GEF Operational Strategy recognizes). a The principal identified target markets for PV are in agriculture, health care, education, telecommunications, and household/village applications. There is a need for "success story" case studies in Africa to accelerate market penetration. * Establishing and maintaining credit schemes carry high costs. There is an argument to be made for putting some of this up-front capital into buying-down the capital cost of RET systems, thereby increasing affordability (again, as GEF recognizes) and helping to achieve the critical mass of projects required to reduce system costs. 4.0 ROLE OF RETs IN ENERGY POLICY, STRATEGY, STANDARDIZATION R-~ ET strategy development in the SADC Energy Sector identified the key players to be: the member state governments, the national electric power utilities, industry, communities, and educational/research institutions. In addition, financial institutions should be prepared to respond to requests from the other key players. Particular policy issues which were confirmed by Bank staff in developing RESA include the following (many of the following are also cited in IEN's draft rural and urban poor energy policy paper). * While recognizing that the utilities need to operate as commercial enterprises, governments should mandate that power utilities provide commercial public power in the country and reconcile the dichotomy between providing rural grid connections (high kWh to fewer households) and providing PV home systems (low kWh to many more households). While the former are more cost effective on a kWh basis, the PV alternative can improve the quality of life of many more individuals and enable creation of more economic opportunities. * Governments should also facilitate appropriate economic and political climates to attract international investment in production of RETs. * It is important that governments encourage public awareness of environmental and other benefits associated with RET applications. 20 Towards a Renewable Energy Strategy for African (RESA) * Governments can encourage local industry and contractors to become involved in the production and promotion of RETs. However, industry must develop local capability for manufacturing RETs and installing and maintaining systems. * Government can provide guidelines for a healthy market by avoiding monopoly, fostering development of codes of practice and standard specifications (avoiding poor quality products), and adopting appropriate pricing and tax policies. * Communities must maintain involvement in project implementation. It is incumbent on them to identify projects to be approved by government in accordance with their needs as defined by energy users, especially women. * Educational and research institutions must support industry in the development of RET products. They can train professional and technical personnel in the design, manufacture, operation and maintenance of RET products. Work in IENPD has found that the following characteristics will increase the likelihood that market-driven RET projects will have a notable near-term impact on economic and social development. They include: * a general public awareness of the capabilities, costs, and maintenance requirements associated with the use of RETs; * public and private sector officials who understand the roles that RETs can play in promoting integrated social and economic development as well as environmental conservation; o a positive perception on the part of the local private sector of the present and potential markets for RETs as well as their involvement in the marketing of the technology; * the institutional capacity to train local technicians to design, install, and maintain RET systems which are appropriate to a country's energy needs and resources; * public policies that encourage the use of RETs and the involvement of the private sector in the production and delivery of energy services; * present or planned national development plans which include the use of RETs to address development issues in areas such as health, education, agriculture, and natural and environmental management; and • financing institutions and mechanisms, with outreach capabilities into the rural areas, capable of facilitating the introduction and diffusion of RETs. 21 Building Blocks for Environmentally Sustainable Development in SSA 5.0 CONSTRAINTS Tn the course of developing RESA, the following constraints to expanding RET in SSA were lidentified: * Institutional and technological inertia favors well-established, traditional energy projects (i.e., the notion that grid extension is a prerequisite for development). * Unfamiliarity with renewable energy technological, economic, environmental and financing requirements impedes dissemination of renewable energy proposals, both within and outside the Bank. * There is a lack of understanding of the needs of individuals (as expressed by them) as well as the "value" that they place on energy services. e Financing schemes do not necessarily increase affordability; it may be necessary to first "buy down" the capital cost. * Even though large potential markets exist, there is a lack of sufficiently clear government policy to encourage the private sector to take the necessary risks. * Anticipated technology changes inhibit private sector investment; for example, a solar PV manufacturer would be reluctant to build a polycrystalline PV plant in Africa today when thin film technology might take over the market in five years. * In some regions, particularly in many SADC countries, rural population densities are quite low. Even though PV or other RETs might be appropriate, servicing can be quite expensive due to the long distances that must be traveled. * There are still too few successful projects to engender confidence. These and other constraints can be grouped in four categories: 1) Technical * lack of locally produced components and raw materials * lack of private sector capacity in manufacturing, distribution, installation, and maintenance 2) Financial * availability of foreign exchange * shortage of capital * affordability of RETs * lack of access to affordable financing for acquiring necessary resources 22 Towards a Renewable Energy Strategy for African (RESA) 3) Institutional * lack of trained manpower * lack of public awareness of technologies * lack of knowledge of RET markets, including energy needs of target groups * lack of institutional framework to assure quality and sustainability of RET applications 4) Policy * lack of favorable arrangements on taxes and duties * lack of clear government policy * restrictions on foreign exchange (allocation) 23 Building Blocks for Environmentally Sustainable Development in SSA 6.0 RECOMMENDATIONS Since the beginning of the preparation of RESA, the emphasis has been put on a network approach, indispensable to bring together the required knowledge and resources for a massive take-off of RETs in the field. This network approach is illustrated in figure 1. Figure 1: Network approach to RESA preparation and development Renewable Energy Strategy for Africa / / \ '\ ~~~~~~~~~~(R.E.S.A.) AFTES, World Bank 1995 A workshop organized by the Environmentally Sustainable Development Division of the Africa Region (AFTES) took place at the World Bank on February 16, 1995. The workshop provided a forum to exchange information on the current and potential development of renewable energy technologies (RETs) in Sub-Saharan Africa. Workshop participants included Africa Department task managers, other Bank staff, NGOs, industry, donors, researchers and consultants. The purpose of the workshop was: * to sensitize task managers to the prospects for using renewable energy technologies in their projects in SSA; * to take stock of what others are doing; and * to develop a plan of action for RET use in the Africa Region. 24 Towards a Renewable Energy Strategy for African (RESA) The principal recommendations of the workshop are the following: * Help to increase local capacity to sustain policies and projects (by creating employment. * Help demystify photovoltaic technology. * Apply technology that responds to expressed user needs, i.e., avoid supply driven bias. * Assist task managers to make appropriate RET choices. * Develop simple guides and tools to assist TMs. These should address value issues, such as essential/non-essential services and economic viability. * Create an accessible information flow network. * Develop clear policy and strategies that encourage public and private sector partnerships. * Clarify the role of donors. * Involve both the private and public sectors in partnerships. (The current IFC Renewable Energy and Energy Efficiency Fund initiative can provide a basis). - Strive towards a balance between target group and commercial development interests. v Establish a framework for discussing the RET option in open policy dialogue between the borrower and the Bank. Rapid dissemination of RETs can be promoted through a combination of measures designed to mobilize project resources and by maximizing the leverage obtained from the Global Environment Facility where such projects are eligible for GEF financing. Ultimately the Africa Region should establish a renewable energy promotion program with the following key elements: (a) provide technical and operational support and advice for CDs and assist in project preparation; (AFTES, ESMAP have roles here) (b) review the option of including a renewables component in each Bank energy project; 25 Building Blocks for Environmentally Sustainable Development in SSA (c) ensure the renewables option is always considered in projects requiring additional energy supply-e.g., health, education, telecommunications, tourism and agriculture; (d) train all energy task managers in the basic technical and economic potential of the major renewable technologies; and (e) follow and disseminate the results of renewable energy projects in Africa. The following specific recommendations arose from the needs expressed by task managers in order to make use of RETs in their project designs. i. Ensure that RET options are considered in the EA/Environmental Review process. ii. Create a task manager working group that will ensure that the best current information is disseminated. This group should comprise members from the energy and non-energy sectors and should represent all CDs. Initial time commitment for the TM working group would be about two hours per month, including dissemination of relevant information throughout their sector. These TMs would become RET resource persons/contact points. iii. Prepare a checklist for TMs to flag RET opportunities. There are a great number of projects that could make use of RET options. It would be useful to prepare a one-page summary sheet of RET options for each sector. iv. Provide a handbook describing the options, including classification of energy services (e.g., essential, non-essential, economically justifiable). The most promising RET for many African countries is solar energy. However, it is important to rate other options such as wind and biogas according to their appropriateness in certain applications. This handbook should be only a few pages in length. The focus should be to reach the greatest number of persons with a small amount of the most relevant information. v. AFTES should coordinate the development and implementation of the RESA, making use of technical expertise at ESMAP, ASTAE, etc.. vi. Make use of GEF funds to cover some PV component costs. vii. Develop procurement guidelines. viii. Provide TMs with lists of suppliers. 26 Towards a Renewable Energy Strategy for African (RESA) ix. Provide TMs with lists of consultants. x. Keep an updated list of all PV applications in Africa. xi. Use donor funds to prepare RET components of projects (to assist TMs). xii. Facilitate TM work (vis-a-vis additional effort required), i.e., they can not all be RET specialists. xiii. Create a RET unit (consultant at AFTES) coordinating with Solar Initiative, ESMAP, etc. xiv. Make use of opportunities within the GEF/IFC Equity Fund and the GEF "Green Carrot" proposals. 7. PLAN OF ACTION ased on the findings during the conduct of this work, the following plan of action has been developed. As mentioned previously, given its broad experience in Africa, its suitability to the dispersed African population, and its potential to satisfy the highest priority development needs in Africa (i.e., water/food, health, and education), the initial focus of RESA is on applications of photovoltaics. The first immediate action is to consolidate the framework within the Africa Technical Department that enables task managers to adopt photovoltaics and other appropriate renewable energy technologies in their projects. This framework should include the following elements. 1. Recommended inclusion of photovoltaic applications and RETs in response to the Initial Executive Project Summary (IEPS), where appropriate. AFTES should allow for additional open dialogue with task managers to help identify opportunities and make the link with existing expertise, e.g., in the Central IENPD Division. 2. Provide a short information document to TMs including: * list of possible RET applications by sector; * sample fact sheets for selected RET applications; * list of suppliers and consultants; * list of donor activities. 3. Issue an electronic newsletter within the Bank and, if appropriate, disseminate information via a public access network such as the World Wide Web home page of 27 Building Blocks for Environmentally Sustainable Development in SSA the Africa Region Technical Department (to be operational early Calendar Year 1996). 4. Create a "Operational Staff" working group. This group should comprise TMs and advisors from the energy and non-energy sectors and should represent all Africa Country Departments. These TMs would become photovoltaic and RET resource persons/contact points for the dissemination of relevant information throughout their sector. 5. Prepare and disseminate a checklist for TMs to flag photovoltaic and RET opportunities. There are a great number of projects that could make use of RET options. It would be useful to prepare a one page summary sheet of photovoltaic and RET options for each sector. 6. Establish a dialogue with other donors, specifically targeting their contribution to the development of wide-scale application of photovoltaics and RET in SSA. 7. Prepare a handbook describing the various renewable energy technology options that could be included in Bank lending. This handbook should initially be only some few pages in length; it could be expanded in response to needs expressed by TMs. The focus should be to reach the greatest number of persons with a small amount of the most relevant information. The handbook should include a classification of energy services (e.g., essential, non-essential but important, economically justifiable). 8. Maintain accessible information accounts required by TMs to procure renewable energy technologies and services, and ensure access to updated descripions of renewable energy technology installations in Sub-Saharan Africa (in particular the database maintained by the US National Renewable Energy Laboratory- NREL). 9. Conduct a feasibility study to determine the need for a RET unit in the Africa Department. The initial scope of work would include the following items: i) Consult with regional organizations/programs, such as the SADC Energy Sector TAU (Luanda), the RPTES (West Africa) and the African Energy Program (AfDB, Abidjan), to determnine priority activities for RET initiatives that respond to African needs. There is a need to synthesize the large amount of information which already exists. ii) Determine an appropriate interfacing role for the World Bank in support of the SADC FINESSE Program. This program is being executed by the UNDP (with Dutch funding), and it wiil be implemented by the SADC Energy Sector TAU in cooperation with the AfDB. 28 Towards a Renewable Energy Strategy for African (RESA) iii) Coordinate with other Bank Group activities such as: the Global Environment Facility; the Solar Initiative; the RPTES; the IFC Renewable Energy and Energy Efficiency Fund; ASTAE; and activities within ESMAP. iv) Convene a meeting of regional governments, NGOs, and potential donors to evaluate the progress made as a result of RESA Phase I. 10. Promote the preparation of a sub-regional project (or a series thereof) to ensure a faster development of RET applications by helping create a critical mass effect on the market and provide energy services down to the grassroots level. 29 Building Blocks for Environmentally Sustainable Development in SSA References 1. S. Karekezi, "Disseminating Renewable Energy Technologies in Sub-Saharan Africa", Annual Review on Energy and Environment, 1994, 19:387421. 2. 0. Davidson and S. Karekezi,"A New Environmentally-Sound Energy Strategy for the Development of Sub-Saharan Africa", AFREPREN, Nairobi, 1992. 3. IENPD, "Photovolaic Power to the People: The Kenya Case", ESMAP, January 1995. 4. Communication with R. Burton, Botswana Technology Centre, 1994. 30 Towards a Renewable Energy Strategy for African (RESA) LIST OF BANK STAFF INTERVIEWED Robert Clement-Jones (AFTES) Robert van der Plas (ENPD) Douglas Barnes (IENPD) Ernesto Terrado (IENPD) Achilles Adamantiades (IENPD) Willem Floor (EENPD) Robin Broadfield (GEF) Philippe Durand (AF5) Michael Sarris (AF3) Nourredine Bouzaher (AF3) Tanya Yudelman-Bloch (AF1) Assefa Telahun (AF1) Michel Layec (AF3) Isabel Valencia (AF3) Dana Younger (IFC/GEF) Mac Cosgrove-Davies (ASTAE) Charles Feinstein (GEF) Jean-Roger Mercier (AFTES) Azedine Ouerghi (AFTPS) Dennis Anderson (IENDR) Indu Hewawasam (AF4) Kees Kostermans (AF1) Jean-Jacques Raoul (AFRSA) Jean Doyen (AFTES) Carlos Algandona (AF4) Chrisian Fauliau (AF4) Vijaya Mackrandilal (AF2) Bettina Moll-Drucker (AF4) Gunter Schramm (IFC) Max Wilton (AFTPS) Anil Cabraal (ASTAE) 31 Building Blocks for Environmentally Sustainable Development in SSA RESOURCE PERSONS AND ORGANIZATIONS The list of persons and organizations at the February 16th workshop could form the basis for an interactive network in the development of a renewable energy strategy as well as in its implementation. The following should be added to the list. Solar Electric Light Fund (U.S.A.) Southern Centre for Energy and Environment (Zimbabwe) Energy for Development Research Centre (South Africa) Centre for Energy, Environment, Science and Technology (Tanzania) AFREPREN (Nairobi) IT Power (U.K.) SADC Energy Sector TAU (Luanda) World Energy Congress/Council International Energy Agency African Development Bank African Energy Program (at the AfDB) UNDP/GEF GTZ (Germany) DGIS (Netherlands) NORAD (Norway) European Cornmission (DGXII, Brussels) 32 Towards a Renewable Energy Strategy for African (RESA) SOURCES OF WRITTEN INFORMATION These volumes will form the core material of a small (half shelf) reference library to be established at AFTES. Items marked with an (*) are quick reference documents which can be useful to task managers. The other documents, while also good sources of information, require some reading time. 1. International Directory of New and Renewable Energy Information Sources and Research Centres; UNESCO, James & James Publishers, 1993. (*) The directory is part of UNESCO's Energy Information Program, the objective of which is to improve the flow of information on new and renewable energies through the establishment of regional networks and the coordination of existing information systems and services. The directory and the computerized database from which it has been generated are intended to facilitate information availability and transfer by providing information on resources organization, institutions, associations, networks, databases, and publications in the area of new and renewable energies and energy conservation. 2. European Directory of Renewable Energy Suppliers and Services; James & James Science Publishers, 1994. (*) This volume contains approximately 50 short (1-3 page) articles on most renewable energy technologies. There is a classified listing of equipment and services for each renewable energy technology. In addition, there are listings of European organizations and companies active in renewable energy activities. 3. Photovoltaics: A Market Overview; eds. A. Derrick, R.W. Barlow, B. McNelis, J.A. Gregory; James & James Publishers, 1993. (*) This volume presents a short review of the PV industry including PV developments up to 1992 and prospects for 1995-2005. There are references to further sources of information including: databases, product guides, industry directories, address lists, industry associations, helpful organizations, journals, and newsletters. There is a world-wide listing of more than 200 manufacturers and suppliers of PV system components, describing their products, annual production, company profile, and specialty. 4. Fact Sheets of Selected Photovoltaic Applications; GTZ, Eschborn 1991. (*) This is a collection of one-page fact sheets for 24 applications of solar photovoltaic systems. They were developed based on GTZ experience in the Philippines. The applications are in rural areas in the following seven sectors: commercial, industrial, agricultural, 33 Building Blocks for Environmentally Sustainable Development in SSA telecommunications, consumer products, communal and residential. The fact sheets contain energy and cost data including comparison with conventional (non-renewable) alternatives. 5. Solar Rural Electrification in the Developing World; Mark Hankins, Solar Electric Light Fund, 1993. This volume presents comprehensive case studies of solar photovotaic systems in the Dominican Republic, Kenya, Sri Lanka, and Zimbabwe. 6. Solar Photovohaic Products: A Guide for Development Workers; A. Derrick, C. Francis, V. Bokalders, IT Power, U.K., 1991. (*) This is a guide to solar-electric (photovoltaic) powered devices, including battery charging, water pumping, refrigeration, lighting, communications, and various other applications. Each chapter finishes with a buyer's guide containing information on prices and suppliers. 7. Solar Pumping: An Introduction and Update on the Technology, Performance, Costs and Economics; R. Barlow, B. McNelis, A. Derrick, IT Power, U.K., 1993. This handbook provides a simple introduction to the equipment, maintenance and operation of solar pumping systems. The book is useful in helping to identify the situations in which solar pumping is appropriate, as well as giving clear methodologies for system sizing and practical cost appraisal. Other chapters review field experience to date and explore the range of commercially available equipment. 8. Solar-Powered Electricity: A Survey of Photovoltaic Power in Developing Countries; B. McNelis, A. Derrick, M. Starr, IT Power, U.K., IT Power, U.K., 1988. This is a survey of experiences gained with photovoltaic systems developed over the last decade to supply power for water pumping, refrigeration, lighting, village electrification and communications in developing countries. It advises on technical, economic, social and institutional factors. 9. Micro-Hydro Power: A guide for Development Workers; P. Fraenkel, 0. Paish, V. Bokalders, A. Harvey, A. Brown, R. Edwards, IT Power, U.K., 1991. (*) This is a comprehensive and practical guide to one of the most reliable and environmentally benign energy resources. The book is essential reading for anyone designing or implementing a small-scale hydro-scheme in a developed or developing country, and for those operating existing systems. The appendices include a list of international suppliers and their range of products. 34 Towards a Renewable Energy Strategy for African (RESA) 10. Windpumps: A guide for Development Workers; P. Fraenkel, R. Barlow, F. Crick, A. Derrick, V. Bokalders, IT Power, U.K., 1993. (*) This is a practical guide to all aspects of wind-powered water pumping for all applications. Simple methods are given for assessment of wind and water resources, system sizing, and economic assessment as well as advice on procurement, installation, operation and maintenance. The book contains a buyer's guide giving specifications and photographs of more than 40 of the major windpump manufacturers worldwide. 11. The Power Guide; P. Fraenkel and W. Hulscher, IT Power, U.K., 1994. (*) This guide to small-scale energy equipment can assist anyone who has to decide which small-scale energy source, and its conversion technology, is most appropriate for their specific situation, and where they can obtain the necessary equipment. Information is provided on hundreds of products from almost 500 manufacturers and suppliers in more than 40 countries throughout the world. 12. Rural Lighting: A Guide for Development Workers; M. Dicko, J-P. Louineau, R. Barlow, P. Fraenkel, V. Bokalders, IT Power, U.K., 1994. (*) This book primarily addresses the question of choosing and using 'stand-alone' lighting systems. It also considers some of the more general problems of using lights, such as sizing and positioning, use of reflectors and methods of improving lighting efficiency. The book also includes a 'Buyers Guide' section providing up-to-date information on lighting systems and products. 13. Water Pumping: The Solar Alternative; Michael G. Thomas, Sandia National Laboratories, 1991. This document has chapters on: design considerations for PV-powered water systems, system selection, cost and economics of pumping systems, and preparing a request for proposal. 14. The Interconnection Issues of Utility-Intertied Photovoltaic Systems; John Stevens, Sandia National Laboratories, 1992. This document discusses technical issues related to utility-intertied photovoltaic systems. 35 Building Blocks for Environmentally Sustainable Development in SSA 15. Photovoltaic Power as a Utility Service: Guidelines for Livestock Water Pumping; Sandia National Laboratories, 1993. This document provides PV service guidelines and PV-powered water pumping guidelines. 16. Stand-Alone Photovoltaic Systems: A Handbook of Recommended Design Practices; Sandia National Laboratories, 1991. This document presents recommended design practices for stand-alone photovoltaic (PV) systems. System-level tradeoffs necessary for any PV system design are discussed. Sixteen specific examples of PV systems designed to meet a wide range of applications are presented. Each example includes sizing, design tradeoffs, hardware specifications, installation description, and cost inforrnation. 17. Photovoltaic Systems for Government Agencies; Sandia National Laboratories, 1992.(*) This is a guide to the use of PV technology within government agencies. Cost-effective applications with payback periods of less than 3 years are illustrated. Readers are given key technical factors that should be considered in determining whether photovoltaics is an appropriate choice to meet their energy needs. 18. Study on NRSE Pricing in the SADC Region; SADC Energy Sector TAU, Luanda, 1992. This report deals with the four most widely used and most promising NRSE technologies in the SADC Region. They are: solar PV for lighting and water pumping, solar water heaters, biogas generators, and wind driven water pumps. The report indicates sources of supply for each technology. The price breakdown for each technology is detailed. Barriers inhibiting price reductions are identified and recommendations to overcome the barriers are proposed. 19. Assessment of Applications and Markets for Solar Photovoltaic Systems in the SADC Region; SADC Energy Sector TAU, Luanda, 1992. The principal objective of this pre-investment study was to determine the potential market size for the most viable applications of PV technology in the SADC countries. The study determined the conditions under which PV systems are economically viable to help the governments of the SADC member states establish appropriate policies, research priorities and financial incentives for the use of PV technology. The specific applications of PV technology assessed in this study were: household lighting and appliances; institutional and commercial lighting and power; pumping for community water supply; pumping for low head, low volume irrigation; and village electrification for a combination of these applications, plus street lighting. 36 Towards a Renewable Energy Strategy for African (RESA) 20. Annual SADC NRSE Directory; SADC Energy Sector TAU, Luanda, 1992. (*) This directory provides lists of: 1) organizations involved in NRSE; 2) NRSE experts and consultants; 3) manufacturers and suppliers of NRSE equipment; and 4) NRSE training centers and courses. 21. Wind and Solar Resources in the SADC Region; SADC Energy Sector TAU, Luanda, 1991. (*) The publication includes general information about wind regimes and solar radiation in the SADC Region, as well as wind speed and solar radiation maps. The information is based on data extracted from the records of various meteorological services and covers measurements conducted over the past 20 to 50 years. 22. Renewable Energy Technologies: A Review of the Status and Costs of Selected Technologies; Kuslum Ahmed, The World Bank, 1994. This document reviews the cost and status of renewable energy technologies, concentrating on the use of biomass for fuel and electricity, solar-thermal technologies, and photovoltaics. 37